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Technology

Is Indonesia’s Trade Deal with the U.S. Enough to Ensure Secure Data Transfers?

24 Jul, 2025
Is Indonesia’s Trade Deal with the U.S. Enough to Ensure Secure Data Transfers?

Indonesia's Ministry of Communication and Digital (Kemkomdigi) has issued a statement clarifying public concerns surrounding personal data transfers to the United States.

The clarification follows the Joint Statement on Framework for United States–Indonesia Agreement on Reciprocal Trade released by the White House on July 22, 2025.

The ministry emphasized that the data transfer clause in the agreement is not a form of free data handover, but a structured and lawful mechanism for managing cross-border personal data traffic.

Final Agreement Still in Progress, Says President Prabowo

President Prabowo stated that the negotiations are ongoing. The White House also noted in its announcement that the agreement is still being finalized under the section Removing Barriers for Digital Trade.

Kemkomdigi confirmed that technical discussions will continue. The agreement remains under development and is not yet finalized.

Data Transfer Is Legal, Measured, and Under Indonesia’s Jurisdiction

Kemkomdigi underlined that the agreement forms a legal basis for protecting Indonesians' personal data when using digital services from U.S.-based companies such as search engines, cloud platforms, social media, and e-commerce.

The ministry stated that any personal data transfer across borders must serve legitimate purposes, remain limited in scope, and be legally justified.

Examples include the use of search engines like Google and Bing, storage via cloud computing, communication on platforms like WhatsApp, Facebook, and Instagram, digital transactions, and research-related data use.

U.S.-Based Digital Services Must Comply with Indonesian Data Protection Law

Data transfers are allowed only under Indonesia’s legal standards. A White House statement confirmed this, saying it would be done with “adequate data protection under Indonesia’s law.”

Kemkomdigi cited Law No. 27 of 2022 on Personal Data Protection and Government Regulation No. 71 of 2019 on the Implementation of Electronic Systems and Transactions as the legal foundation for outbound data transfers.

Data movement to the U.S. remains under the supervision of Indonesian authorities and follows strict legal procedures.

Cross-Border Data Flow Aligns with Global Best Practices

Kemkomdigi noted that international data transfer is a common global practice, especially in digital governance.

Countries such as the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom have long adopted secure and reliable mechanisms for cross-border personal data flow.

Indonesia positions itself equally in this global context while maintaining national legal protection as its foundation.



PHOTO: FREEPIK

This article was created with AI assistance.

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